Citation to idle Texas Foundries Steel Division in Lufkin, Texas.BIRMINGHAM, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--June 18, 1996--Citation Corporation (Nasdaq: CAST) announced that it will immediately begin idling its steel casting Steel casting is a manufacturing process in which molten metal is poured into a mold, allowed to solidify within the mold, and then the mold is broken and the solid piece is taken out. production at the Steel Division located at its Texas Foundries plant in Lufkin, Texas. The Division, which has approximately 125 employees, had sales of $13.3 million in fiscal year 1995 and showed a loss of $2.1 million. The Iron Division of Texas Foundries, which will continue in operation, had sales of $65.5 million in fiscal 1995 and is profitable. The Iron Division has been expanded and currently has capacity for about $100 million of iron casting sales. Citation Citation (foaled 1945) U.S. Thoroughbred racehorse. In four seasons he won 32 of 45 races, finished second in ten, and third in two. He won the 1948 Triple Crown, and became the first horse to win $1 million. He set a world record in 1950 by running a mile in 1:33 3/5. had raised prices on products produced by the Steel Division effective March 1, 1996 in an attempt to make the plant profitable. However, most customers of the division opted to move work elsewhere. Steel casting customers remaining after the facility is idled will be offered the opportunity to purchase their products from Citation's other steel divisions; Texas Steel, Inc. at Ft. Worth, Texas of Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York Steel Foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. in Hamburg Hamburg, city, Germany Hamburg (häm`b  rkh), officially Freie und Hansestadt Hamburg (Free and Hanseatic City of Hamburg), city (1994 pop. , Penn.
Some of the equipment of the steel division will be transferred to other divisions and some is expected to be used in iron production at Texas Foundries. At this time, Citation intends to operate the facility and equipment for other products, rather than write off the assets. Texas Foundries has a large number of temporary, non-Texas Foundries employees currently in the Iron Division. All regular hourly employees in the Steel Division will be offered jobs in the Iron Division, therefore, it is not anticipated that any regular, hourly employees will be laid off as a result of the idling of steel production at Texas Foundries. Rod Paulette, Group Vice President, said, "We expect long term this will make our Texas Foundries division even stronger. Texas Foundries is a key component of Citation Corporation in which we have recently invested approximately $30 million for expansion. We believe it will continue to be a significant profit producer for the corporation for many years to come." Citation Corporation, headquartered in Birmingham, Ala. is a major components supplier to leading manufacturers of capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods . The company currently operates 18 manufacturing facilities in nine states and employs more than 5,000 employees. During its fiscal year 1995, its annual sales were approximately $308 million. CONTACT: Citation Corporation, Birmingham Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. B. Atkins, 205/871-5731 |
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